In a recent cross-border development, a miracle just happened and now that is good news for Pakistan: a reserve of petroleum and natural gas has been found in the territorial waters of this country. The newly found reserve is supposed to rank fourth among oil and gas reserves all over the world.
All this was made sure through a comprehensive three-year geographic survey with the help of a friendly country. It also includes another big discovery in Pakistan’s energy sector. This is good news for the country, as it can bring a remarkable improvement in the country’s economy in the best possible way towards economic recovery. According to a senior security official, the geographic survey had located the exact coordinates of the deposits.
Huge oil and gas reserves explored: Is it good news for Pakistan?
The discovery is hailed as the point at which Pakistan joins the emerging ‘blue water economy’-which includes oil, gas, and other valuable ocean minerals. This no doubt is good news for Pakistan; however, experts remain circumspect. A former member of Ogra, Muhammad Arif, tempered the euphoria to say that although the opportunity was exciting, it was not a foregone conclusion that the reserves would live up to expectations.
Extraction and development will take years to realize and require around $5 billion of investment. Furthermore, proper reserves analysis should be undertaken to ensure their economics are really translated into value. This is good news for Pakistan, which is persisting with its economic crisis compounded by external shocks. These events include 2022 floods and the slowing down of the global economy.
With the growth projections reduced to 1.7% in 2024 and external debt ballooning to over $126 billion in 2023 alone, the reserves of oil and gas, if fully tapped, could ease Pakistan’s reliance on energy imports and bring respite to the country from the economic squeeze.
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